Gandhinagar: Expecting a fresh wave of investments in financial technology (fintech) services, the Gujarat government is working on plans to set up a new fintech park that will serve the Gujarat International Finance Tec-City (GIFT City) in Gandhinagar.
The fintech park will also serve new areas near the Gujarat International Finance Tec-City City. The fintech sector has seen tremendous growth in recent years. Singapore has emerged as the hub for this new market and a similar technological disruption is making inroads into India.
The Gujarat government is also looking at creating a dedicated fintech policy that will give a number of incentives to companies which set up base at GIFT City IFSC (International Financial Services Centre) and surrounding areas.
Apart from central government sops, the state government plans to provide additional incentives as well.
The policy, according to government sources, will be a crucial driver for startups on the lines of Paytm, PhonePe, RazorPay, MobiKwik, and PayU. Fintech has redefined how transactions are done.
“Apart from the IT-based ecosystem and infrastructure, one of the biggest enablers for a fintech company planning to set up operations in GIFT City IFSC is that it now has a unified regulator,” said an industry expert. A final draft of the fintech policy is almost ready, said government sources. “We have held up the announcement of the policy, as we expect a major boost in the form of tax holiday from the Government of India for companies setting up base at the GIFT City IFSC,” a source said.
“This tax holiday announcement is expected in the Union budget. After the Union budget, the state government will announce its own set of additional incentives through the new fintech policy. This will provide a quantum impetus to the GIFT City project.”
The state government has already sought the approval of the central government for the announcement of the new fintech policy.
“Private developers will be allowed to develop fintech-related projects in line with their requirements,” the source added. “Under the new policy, the proposed fintech park will be given significant support. Customized support to major fintech companies on the lines of manufacturing companies will also be offered.”